| Type | Public |
|---|---|
| Traded as | NASDAQ: PFSW |
| Industry | eCommerce · Outsourcing Fulfillment · Logistics |
| Founded | 1994 |
| Headquarters | Dallas, Texas, United States |
| Number of locations | 5 (United States, Canada, Belgium, Philippines) |
| Area served | Worldwide (North America, Europe, Asia, South America, Africa) |
| Key people | Mark C. Layton (CEO, Chairman) Michael Willoughby (President) Thomas J. Madden (CFO) Dave Reese (VP of Client Solutions) Cindy Almond (VP of Client Services) |
| Employees | 1,100 |
| Website | PFSweb.com |
PFSweb, Inc. (Priority Fulfillment Services) is an international provider of integrated eCommerce and business process outsourcing solutions [1] most well known as a leading business-to-business (B2B) and direct-to-consumer (DTC) order fulfillment and call-service provider.
Services offered by PFSweb include:
The company was founded in 1994 in the Dallas suburb of Plano, Texas, and moved to Renaissance Tower in Downtown Dallas in 2011.[3]
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PFSweb, Inc. was founded in 1994 as Priority Fulfillment Services, Inc. (PFS) by Texas-based Daisytek International Corporation, a leading wholesale distributor of computer and office automation supplies such as printer ribbons, toner cartridges, and computer disks. The new unit was initially created to perform order-processing, fulfillment, and telemarketing services for other companies, due to a growing demand for outsourcing in this area. Soon after its formation, PFSweb was chosen to perform telemarketing and distribution services for IBM product lines throughout North America.
PFSweb soon began to take on additional clients, and Daisytek doubled the size of its own "superhub" warehouse/shipping center in Memphis, Tennessee in part because of the unit's success. [4]
In January 1999 the company formed a European division, PFSweb Europe, with 10 employees working at a call and fulfillment center in Maastricht, Netherlands, and also launched a new division to offer order fulfillment services to internet-based retailers. It was targeted toward both web-based and brick-and-mortar firms who were adding web ordering capabilities and needed to quickly get systems and staff in place.
With Daisytek's business model appearing dull in comparison to the internet-based fulfillment services offered by PFSweb, the parent firm decided to capitalize on the market frenzy for Internet stocks by selling shares of the firm on NASDAQ.
In early December 1999 one-fifth of the company, now bearing the name PFSweb Inc., highlighted its e-commerce capabilities, was sold in an initial public offering (IPO). Mark Layton, the 40-year-old CEO of Daisytek, who had recently published a book called “.coms or .bombs ... Strategies for Profit in e-Business”, took the titles of president, CEO, and chairman of PFSweb, while remaining the board chairman of Daisytek.
In late July 2000, PFSweb introduced the Entente Suite of software, which offered full e-commerce support from web site interface to back-office accounting functions, customizable to meet each customer's needs. PFSweb also added managed hosting and web site development services to its offerings. To accomplish the former, the firm established a secure data center.[5]
In February 2002 PFSweb began offering customized manufacturing and supplier inventory services to further support its clients. In June, PFSweb sign a five-year contract with the Smithsonian Institution's Business Ventures unit to provide fulfillment services for catalog and web orders. An alliance was also formed with eBay that would allow PFSweb's clients to distribute their products via that firm's online auction site. The company was now working to cut costs after losing key clients as the .com bubble burst, and in the summer laid off 60 employees, paring its total staff to about 550.
In September 2003 PFSweb added a new package of services to help their customers handle product recalls and November saw a new contract signed with Shell Energy Services Company to support that firm's new web initiative, Shell HomeGenie, which would allow customers to monitor their homes and control some appliances remotely.
In August 2004 the company signed a lease on a 435,000-square-foot (40,400 m2) warehouse/shipping center in Southaven, Mississippi, which was located near its Memphis superhub site. The firm had been in a dispute with Memphis officials since 2003, when former parent company Daisytek had gone bankrupt and tax breaks for the Memphis site that had been granted to that firm ended. When an appeal to re-acquire the tax breaks was denied, the firm had begun seeking a new location outside of Memphis.[6]
In November 2005, PFSweb and eCOST.com announced that they have entered into a non-binding letter of intent (LOI) signifying the merger of PFSweb and eCOST.com. Under the terms of the merge, PFSweb issued eCOST.com shareholders one PFSweb common share for each outstanding share of eCOST.com in a tax-free, share-for-share transaction. As a result, eCOST.com became a wholly owned subsidiary of PFSweb. The merger was officially completed in February 2006.[7]
In 2006 PFSweb named Michael Willoughby as the President of the company[8] and acquired several notable clients, including LEGO, Roots Canada Ltd, and Katun Canada.[9]
PFSweb, Inc. announced in April 2007 that it is expanding its customer care services operations with a new 6,500-square-foot (600 m2) customer call center in the Philippines. The new facility, located in downtown Manila, initially housed the customer service department for eCOST.com, but on a case-by-case basis the services of this location was also offered to PFSweb clients.[10]
In early 2008 PFSweb formed a partnership with Demandware to assist in targeting the e-commerce technology market - the purpose is for Demandware’s e-commerce platform to supplement PFSweb’s fulfillment and customer care services. PFSweb integrated the technology with its existing services, allowing PFSweb to enter into the marketplace of End-to-End (E2E) suppliers.[11]
PFSweb announced in April 2009 a five-year agreement had been reached with Army & Air Force Exchange Service (AAFES) to provide a comprehensive global fulfillment solution that supports the All Services Exchange Catalog and Online Store.[12]
On January 15th, 2010, it was announced that PFSweb and Procter and Gamble (P&G) had joined together to launch an online store. Named the “eStore”, this online shopping site will be owned and operated by PFSweb and will exclusively feature P&G products for sale to consumers in the United States. The eStore is planned to launch in the spring of 2010, pending a pilot of the site with 5,000 consumers which is currently underway.[13]
On April 7th, 2010, Carter's, Inc. selected PFSweb to operate their innovative multi-brand web store along with their high-touch customer care services, fully branded order fulfillment and comprehensive financial transaction management for both the Carter’s and OshKosh B'Gosh brands.[14]
On February 22, 2011 it was announced that PFSweb had completed the sale of certain assets of eCOST.com to a new subsidiary of PC Mall, Inc. for $2.3 million. In addition, PC Mall has contracted with PFSweb to provide a variety of e-commerce services, including IT and customer care, to support PC Mall's newly acquired eCOST.com operations on a temporary basis.[15] PFSweb announced on March 22, 2011 its partnership with luxury brand kate spade new york using its End2End eCommerce offering. This eCommerce effort was unique for PFSweb due to the kate spade new york website featuring not only an eCommerce storefront but also a collaborative "play" section focused on content instead of products.[16]
PFSweb has partnered with the several charities in the past, including the United Way. During the holiday season, PFSweb employees volunteer within their communities on behalf of the United Way.[17]
The company has also received several accolades, including a "Quality Supplier" award from Xerox[18], an ASPire award for "best management and operations practice"[19], and a top 5 ranking in the Deloitte & Touche Technology Fast 500.[20] PFSweb was also awarded the 2009 "Technology Supplier of the Year" award by Riverbed Technology.[21]
Clients of PFSweb include: